Critical Survey: Mitek Systems (NASDAQ:MITK) & Veritec (OTCMKTS:VRTC)

Mitek Systems (NASDAQ:MITK) and Veritec (OTCMKTS:VRTC) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Earnings and Valuation

This table compares Mitek Systems and Veritec”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitek Systems	$172.08 million	2.52	$3.28 million	$0.28	34.21
Veritec	$460,000.00	0.00	-$1.06 million	($0.04)	N/A

Mitek Systems has higher revenue and earnings than Veritec. Veritec is trading at a lower price-to-earnings ratio than Mitek Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mitek Systems and Veritec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitek Systems	7.51%	18.85%	9.70%
Veritec	-258.37%	N/A	-939.92%

Institutional & Insider Ownership

83.6% of Mitek Systems shares are owned by institutional investors. 2.1% of Mitek Systems shares are owned by insiders. Comparatively, 51.8% of Veritec shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Mitek Systems and Veritec, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitek Systems	0	1	3	0	2.75
Veritec	0	0	0	0	0.00

Mitek Systems presently has a consensus price target of $12.88, indicating a potential upside of 34.39%. Given Mitek Systems’ stronger consensus rating and higher probable upside, equities analysts clearly believe Mitek Systems is more favorable than Veritec.

Risk and Volatility

Mitek Systems has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Veritec has a beta of -37.1, indicating that its stock price is 3,810% less volatile than the S&P 500.

Summary

Mitek Systems beats Veritec on 11 of the 12 factors compared between the two stocks.

About Mitek Systems

Mitek Systems, Inc. provides mobile image capture and digital identity verification solutions worldwide. Its product portfolio includes Mobile Deposit that enables individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; Mobile Verify, an identity verification solution that is integrated into mobile apps, mobile websites, and desktop applications; and Mobile Fill, which includes automatic image capture, minimizes the numbers of clicks, and expedites form fill completion. The company also offers MiSnap, a mobile-capture software development kit that enables an intuitive user experience and instant capture of quality images of identity documents and checks. CheckReader enables financial institutions to automatically extract data from checks once they have been scanned or photographed by the application; Check Fraud Defender, an AI-powered and cloud-hosted model for fighting check fraud; and Check Intelligence that enables financial institutions to automatically extract data from a check image received across any deposit channel, including branch, ATM, remote deposit capture, and mobile. In addition, it provides MiVIP, an end-to-end KYC platform that allows companies to design, build, and deploy robust KYC journeys with little or no development resources; and MiPass provides protection against most sophisticated forms of identity theft and dangerous fraud techniques, such as deepfakes and synthetic identities. Further, the company provides ID_CLOUD, an automated identity verification solution that is integrated into a customers’ application to read and validate identity documents; IDLive Face, a passive facial liveness detection product; IDVoice, a robust AI-driven voice biometric engine; IDLive Voice to stop spoofing attacks on voice biometric systems; and IDLive Doc that works to fight fraud related to digitally displayed document images. The company was incorporated in 1986 and is based in San Diego, California.

About Veritec

Veritec, Inc., together with its subsidiaries, engages in the development, sale, and licensing of products and providing services related to its mobile banking solutions in the United States. The company offers Mobile Toggle Card-Visa prepaid card program, a debit based, pre-paid, and gift card solution to debit card issuers and sponsoring organizations; and blinx ON-OFF debit card-Visa prepaid card programs. It also provides custom branded debit card program that enables card issuers and sponsors to issue debit, pre-paid, and gift cards under its branded programs through the licensed use of the mobile banking platform, as well as related professional services. In addition, the company offers blinxPay mobile wallet application, a payment processing system that enables customers to make purchases at participating merchants using funds loaded into their blinxPay virtual account. Further, it offers mobile banking solution that enables member card programs to process and settle member rewards in open or closed loop processing environment, as well as back-end card processing services to the card issuing institutions for various cardholder transactions on the licensed platform. The company was incorporated in 1982 and is headquartered in Golden Valley, Minnesota. Veritec, Inc. is a subsidiary of The Matthews Group, LLC.